Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Too few brands have a practical win-back strategy

Companies usually lose from 15% to 20% of their customers annually. They leave for many reasons. Some move, some die, some go out of business and some are seduced by the competition. The majority of customers leave because they simply feel you don't care about them or their business. Sounds immature and childish but, it's true. You may care, but if they perceive you don't then in their minds-you don't.

Most companies today don't know how many customers they've lost, much less attempt to bring them back. According to Frederick Reichheld, former director of Bain & Company's customer retention programme, "It is common for a business to lose 15 to 20% of its customers each year. When defections are cut in half, the average growth rate more than doubles. A five percent change in rate of retention swings profit increases from 25% all the way to 100%".

Most companies won't try to win back former customers simply because there may be some pain involved in the process. The process of winning back customers begins with finding out why they left in the first place. Research has shown that customer relationships break up for the same reasons personal ones do… lack of communication.

In his book, Achieving Excellence Through Customer Service, Tschohl recommends creating an action group of your most proficient employees (Swat Team). Their job is to contact defecting customers and to persuade them to give the company another chance. The plan for countering high defections should include a review of the problem:

• Cost of acquiring new loyal customer;
• Annual marketing and advertising budget;
• Average size of purchase by a loyal customer;
• Number of customer complaints each year;
• System for measuring and tracking defections.

First, call them and ask them why they left. It's an excellent way to find out why they left and attempt to win them back. A majority of former customers will tell you why they left and what you can do to earn their business again. If they don't, at least they will tell you what made them so unhappy and you will have the opportunity to correct a problem within your organisation.

The customers you have the best shot at winning back are the ones you unintentionally pushed away because of a screw-up in the process, such as delivery, billing or service problems, and those who are pulled away by competitors who offered them what they perceive as a better value.

According to existing research, your chances of successfully selling to a former customer are 20% - 40%. That's quite a bit higher than the 5% - 20% chance of selling to a new prospect. Your chances are a whole lot better. Your former customer already knows you and what your products or services can do. Plus, you know them. You have a huge advantage over a competitor as you have access to their past buying habits.

Next, listen carefully and then ask for their business. With attention to detail, to building trust, showing respect, expressing appreciation, being competent as well as courteous you can watch as you move your lost customer into the profit zone. Communicate with customers and discuss the issues that made them leave. Sometimes it's simple and other times there are real problems that need to be addressed.

"Don't let another customer walk out the door or hang up the phone vowing never to return to your place of business. It was previously stated that an increase of only 5% in your customer retention could mean a boost of 25% to 100% to your profits," concluded Tschohl. "It's at that moment of truth that you can create an awesome experience customers remember."

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)